Investors Turn To Gold After U.S. Downgrade

MINNEAPOLIS (WCCO) -- America's credit downgrade has many investors turning to gold. As a result, the price of an ounce of gold shot up to more than $1,700.

"It's been in the $1,500 range up to $1,600," said Marjory Torgerson, store director of Be Iced in Edina. "Today when I came into the store in the afternoon I looked it up on spot market and it was $1,749."

Torgerson said it's the first time she's ever seen gold at that price. She said in the last few months more and more customers have been coming to cash in on the precious metal.

"People are probably not certain what the economy is going to do so gold is always a safe way to go," Torgerson said. "When we started this store six years ago it went for about $300 dollars for an ounce. So it hasn't been going down in the last three years, it's been steadily rising."

NewsRadio 830 WCCO's Edgar Linares Reports

Most of the customers that come to Be Iced are looking to monetize the jewelry they're no longer using. That's what brought in customer Elizabeth who didn't want to give her last name.

"I had some extra jewelry and I'm going through a divorce," Elizabeth said. "I need to make sure I can pay for some of my kid's activities."

She saw the price of gold on the rise and thought today would be a good day to come in. She's selling three rings -- a platinum one and two gold.

"They're not being used," Elizabeth said.

In order to get a customer the most for their gold, Be Iced uses two methods to test the quality. They have an electronic test and acid test.

"Everyone's gold is going to be different," said Torgerson. "Someone could have a light weight piece, others a heavy."

What Be Iced pays out for an ounce of gold is around $1,064.

She said they're averaging between five and 20 customers a day looking to sell or trade and expects more to come.

"I think people will be very motivated once they see those prices and they start thinking about it," Torgerson said.